Aluminium yesterday traded with the positive node and settled 0.81% up at 105.5 as more shorts closed their LME aluminum positions overnight after inspiring economic data streamed out from the US, with total LME aluminum positions plunging 24,500 lots to the level a month earlier. This had supported a strong rebound in LME aluminum, which closed USD 22/mt or 1.1% at USD 2,021/mt, the intraday high. Most European and US investors have moved to the sidelines this last trading day before Christmas and deals therefore will turn even lighter. LME aluminum may lack the momentum to move up further and will hover between USD 1,985-2,025/mt as it struggles at the 10-day moving average during today's trading. Friday is the last trading day before the Christmas holiday, and Asian investors are expected to mainly close positions, creating great difficulties for prices to break out upside pressures. Nevertheless, upbeat economic data from the US on Thursday will help support prices. In yesterday's trading session aluminium has touched the low of 104 after opening at 104.8, and finally settled at 105.5. For today's session market is looking to take support at 104.5, a break below could see a test of 103.4 and where as resistance is now likely to be seen at 106.1, a move above could see prices testing 106.6.
Trading Ideas:
Aluminium trading range is 103.4-106.6.
Aluminium gained as more shorts closed their aluminum positions overnight after inspiring economic data streamed out.
Trading volumes were expected to remain light ahead of the Christmas holiday weekend.
Italy passed the latest austerity measures Thursday, comforting market concerns over Europe's debt crisis.
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